The heads of major international financial and economic institutions have warned that the ongoing conflict in the Middle East, involving the United States and Israel against Iran, is straining global energy supplies, disrupting trade flows, and increasing risks for vulnerable economies. In a joint statement released after a meeting on Thursday, leaders of the International Energy Agency, International Monetary Fund, World Bank, and World Trade Organization said that while the global economy remains broadly resilient, the conflict is creating disproportionate pressure on poorer nations through rising fuel and fertilizer prices, heightened uncertainty, and potential job losses.

The organisations highlighted growing concerns over the security of energy transport routes, particularly the Strait of Hormuz — a critical chokepoint for global oil and gas shipments. Any disruption in shipping through the waterway, they warned, could significantly affect global supply chains and energy market stability. The statement noted that the war has already disrupted trade flows and rattled financial markets, with investors reacting to fears of prolonged instability in the region.

The institutions said they convened the meeting to assess coordinated responses to the economic consequences of the conflict and to evaluate potential risks to global recovery. Officials cautioned that if shipping patterns do not normalise soon, rapid depletion of global oil inventories ahead of peak summer demand in the Northern Hemisphere could create additional pressure on fuel security.

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They warned that sustained disruptions could worsen market volatility and weaken broader economic resilience across multiple regions. The warnings come amid continued geopolitical tensions, with US President Donald Trump indicating that discussions are underway regarding a possible extension of the ceasefire with Iran. Any potential agreement, according to reports, would include provisions related to securing maritime routes and addressing concerns over Iran’s nuclear capabilities, though no final deal has been confirmed.

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